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spring 2012

Species Spotlight

Shop Profile

The inside scoop on figured English sycamore. Page 2.

Referrals key to cabinetmaker’s success. Page 3.

Sector Profile: Business

Furniture Anticipating Strong 2012

The business of business furniture is on the upswing in 2012, according to trade data and those on the manufacturing front lines.

According to the Business and Institutional Furniture Manufacturers Association (BIFMA), the business furniture market was projected to increase 14.6 percent in production in 2011. Consumption of business furniture is anticipated to rise 1.3 percent in 2012.

About 15 years ago, HSA Rolltops shifted to exclusively manufacturing business furniture and added a tambour-style door that gave the user far more access to the electronic equipment. The door is self-storing, requires no extra room and has become the company’s signature design.

“We’re a little more relaxed. People are following through with previously planned projects and things are getting better,” said Alan Ogelsby, chief operating officer of HSA Rolltops in Mishawaka, Ind., which manufactures business furniture featuring its signature tambour-type closing door. Ogelsby and others are breathing a sigh of relief this year thanks to the projected uptick in the business furniture market last year. According to the Business and Institutional Furniture Manufacturers Association (BIFMA), the business furniture market was projected to increase 14.6 percent in production in 2011. Consumption of business furniture is anticipated to rise 1.3 percent in 2012. The news couldn’t come quick enough for business furniture makers. BIFMA, which develops standards for the North American office and institutional furniture industry, says the value of America’s office furniture market dropped sharply during the early days of the most recent economic downturn; a decline of 2.3

percent in 2008 and another 29.7 percent in 2009. For HSA Rolltops, the decline in the economy meant many of their customers, such as schools, government agencies and houses of worship, held back on previously planned projects. “Our customers wanted to make sure they could weather the storm before they began a new project,” said Ogelsby.

Streamlining operations HSA Rolltops began by manufacturing and selling electronic components, such as projectors, that are housed in business furniture. About 15 years ago, the company shifted to exclusively manufacturing business furniture and added a tambour-style door that gave the user far more access to the electronic equipment. The door is self-storing and requires no extra room, said Oglesby, and has become the company’s signature design. During the decline, HSA Rolltops streamlined its manufacturing and automated more equipment, leading to more efficiencies across the company. “We expected the market would come back around, but taking these measures allowed us to be patient,” said Oglesby.

Relying on partners Through the ups and downs of the industry the past few years, HSA Rolltops has continued to partner with its distributor, Gano Plywood, and Timber Products for its material needs. “I can’t remember a time when we didn’t use Timber Products,” said Oglesby. “Timber Products is able to meet our needs and fits best with what we are producing. We currently use 3/4-inch Red Oak Pro Core with A1 plain slice veneers. This material takes advantage of the strength and resilience of a veneer core product along with a dense, but thin layer of fiberboard for face veneer control.” While the business furniture market is seeing an uptick, Oglesby says “the market isn’t increasing as quickly as the fall off.” But with their new efficient measures in place, HSA Rolltops will continue to see small improvements. As for advice for other manufacturers that are not yet seeing improvements in their industries? “Don’t be wasteful if you want to survive,” said Oglesby. For more information on materials used in business furniture manufacturing, contact your Timber Products sales representative.

Honoring Robert Alan Pritzker June 30, 1926 – October 27, 2011 Timber Products Company has had a long-standing relationship with the Pritzker family of Chicago, who for several generations were partners in our wood products manufacturing business. It is with great sadness that we announce the passing of the last of the three Pritzker brothers, Bob Pritzker. Bob was a kind man with a great organizational mind. He built a huge, diversified company, The Marmon Group, based on his principles of fairness, honesty and ethical business behavior. He instilled these principles throughout the company’s worldwide businesses. We will miss him as a friend and as a brilliant mind. Joseph H. Gonyea II CEO

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Video of the Month It’s a question heard time and time again from distributor customers and everyday woodworkers: what is hardwood plywood and how do we use it? To help answer this question, Timber Products Company has put together a video that explains the basics of hardwood plywood that you can use in your business. Feel free to link to this video or pull it onto your website using the YouTube URL. The video will help customers learn the key features of hardwood plywood and how the material is perfect for projects around the home. Watch this video and others on our YouTube channel at www.youtube.com/timberproductstv.

What’s Next in Residential Green Building: Growth While our nation has been going through the worst recession in the residential marketplace in history, the National Green Building Standard has been quietly building awareness and interest through local home builder associations across the nation. Some experts in the green building business feel that this program is poised to grow dramatically when and as we come out of this depressed market. In fact, a report released at the International Builders Show by McGraw Hill Construction said green homes are expected to grow from 17 percent to between 29 percent and 38 percent of the market by 2016. If you are in the woodworking business, you should be aware of what this program offers. In 2007, the National Association of Home Builders (NAHB) and the International Code Council partnered to establish a much needed and nationally recognized standard definition of green building for residential construction. The resulting National Green Building Standard is the first and only residential green building rating system to undergo the full consensus process and receive approval from the American National Standards Institute (ANSI). The standard defines green building for single and multifamily homes, residential remodeling projects, and site development projects while still allowing for the flexibility required for regionally appropriate best green practices. Certification to the standard is provided by the NAHB Research Center. Like most green building programs, there are four threshold levels of certification— Bronze, Silver, Gold and Emerald. Also like similar programs, the National Green Building Standard takes a holistic approach, with requirements that cover every aspect of a building’s impact on the environment. Projects earn points under each requirement: lot

design and development, resource efficiency, energy efficiency, water efficiency, indoor environmental quality, and, lastly, operation, maintenance and building owner education. It truly is a standard for the mainstream public, a standard that drives environmental practices in a user-friendly way. The free Green Scoring Tool provides instant feedback on your project and how to earn points. This gives building owners a lesson of sorts on practical things they can do with their homes that will have a positive impact on the environment and by how much. There are mandatory requirements in the standard, but each is an obvious provision that one would want in any “green” home.

According to McGraw-Hill’s report, the reported costs of building a green home have gone down significantly. Builders report that the extra expense of constructing high-performance homes is now 7 percent, as compared with 10 percent in 2008 and 11 percent in 2006. As the Gen X, Gen Y and Millennial Generations enter the residential marketplace, environmental attributes in a home are critical. The National Green Building Standard does an excellent job of delivering on environmental requirements that will have a real and measurable impact on the environment. It’s easy to understand the program and how it works, and it’s very affordable. We feel that this adds up to a winner for the typical residential buyer who wants to do the right thing environmentally, but doesn’t want to go over the top. And with thousands of home builders across the nation having the NGBS at their fingertips, the next generation of home buyers will likely see this green option.

What sets the National Green Building Standard apart is its ease of use and relatively low cost.

In March 2010, a study was done by an independent organization on the costs of “green” single family residential building in Chicago. The study compared the cost of three residential green building programs: LEED for Homes, Chicago Green Homes Program (CGH) and the National Green Building Standard (NGBS). For a project that was built to the Gold level equivalent, the CGH program added 3.07 percent to the cost of the building, NGBS added 3.70 percent and LEED-H added 6.10 percent. To give you a comparison of one cost component, LEED-H resignation, verification and certification cost was $2,776, while the same cost for the other two programs was $500. The LEED-H program has more challenging requirements and thus higher fees.

Environmental responsibility in building construction will happen if we all support it at a grassroots level. The market is also determining that this is the direction it is headed. Think about how you personally can get involved. Think about how your company can be involved and how that involvement will make your slice of the world a better place. If we all take responsibility for just a little slice of the green movement, the results will be astronomical. The future of our environment is up to each and every one of us. More green building is coming. The question is, will you be ready?

Species Spotlight: Figured English Sycamore In this issue we are debuting a new feature, Species Spotlight, which shares insight from Timber Products veneer specialist Eric Cullen on a popular species in the marketplace. If you have a particular species you would like to know more about, send an email inquiry to lhartwig@timberproducts.com and we will include it in a future edition.

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Appearance: Member of the maple family; extremely bright white appearance; almost pure white in color. Does not take on yellowish tint of American maple.

Current Trend: Frameless, modern, European-style cabinets that are making a bigger push into the America market. Sycamore fits into this trend.

Uses: Currently being used in kitchen cabinets; quarter sliced veneer.

Availability: Cabinets made with Sycamore are sold through big box stores across the country.

Characteristics: Beauty, fine grain, consistent bright white color, pronounced uniform figure, natural look, clean, modern lines.

If you have a question about Figured English Sycamore, contact your Timber Products sales representative.


5 Questions with

Joe Gonyea, III, COO, Timber Products Company TL: What should distributors and cabinet companies do to plan for a strong 2012?

The wood products industry has gone through dramatic changes during the past three years. To get a better understanding of where the panel business is today, and where it’s headed in 2012, Timberline recently sat down with Joe Gonyea, III, Chief Operating Officer of Timber Products Company, to talk about the coming year. Timberline: What is your view of the wood products business in 2012, and what will it take to be successful? JG: I am more optimistic about 2012 than what you tend to read in the trade press. Yes, it will likely be another challenging year, but I expect some growth overall, particularly in the institutional business. As an industry, we primarily refer to new housing starts as our leading indicator. At Timber Products Company, we predict growth in housing starts to be in the neighborhood of 700,000, up from 610,000 in 2011 but a long way from what we once thought was sustainable, at 1.5 million starts. We also predict continued nominal growth for the home repair and remodel sector. Good companies do well in both good times and bad because they focus on the things that they can control, such as product quality and customer service. That is what Timber Products has done, and I like the direction we are headed in this new year.

JG: Focus on partnerships. Times like these require strong supplier-customer partnerships. I’ve seen this time and time again. Our company and family have a great deal of experience with partnerships, and we understand how a true partnership must work. Our great grandfather, Henry Gonyea, had a saying he lived by, “Be friends first and the money will take care of itself.” By forging partnerships, customers get to know the capabilities of a supplier, and a supplier becomes even more knowledgeable about a customer’s business and challenges. Only then can the two work together to help each other. In a true partnership, your word is your bond and the business that follows must be good for both parties to last. TL: What changes do you see in the marketplace in 2012? JG: On the production side of the industry, I believe we will continue to see consolidation and plant closures as the demand-capacity ratios are still relatively out of balance for many products. With consolidation will come opportunities, and we hope to be in a position to take advantage of those when they materialize. At Timber Products, we have challenged every team member to help us get smarter and better at every aspect of our business. I believe the marketplace will require new ideas and new and better products, with improved services, to help customers deal with an ever-changing marketplace in a global economy. TL: What should distributors be thinking about as we head into 2012?

user. This is where we can be an asset. Our job is to help our distributors deliver more value to their enduse customers in a cost-effective way. For our size company, we offer one of the most diverse product offerings for our customers from Timber Products and its affiliated company, SierraPine, Ltd., all made to order. Additionally, that means providing guidance, product literature, green product information and training, videos and other marketing tools that help get the job done. We need to work together now more closely than at any time in our 94-year history. TL: Looking back on 2011, how would you characterize the year and what is the single most important thing you learned? JG: From our standpoint, 2011 was active. We did not sit still. Despite challenging markets in 2011, Timber Products made two strategic acquisitions. We purchased the panel products division of The Penrod Company, which significantly expanded the size and product selection of our international division, TP Global. Our family secured full ownership of our timberlands, 114,000 acres in Northern California, which will help ensure our long-term wood supply for our softwood veneer mill in Yreka and our Southern Oregon plywood operations. Additionaly, we continued to invest in our plants. Our sales team traveled more than ever before, and we invested in innovative marketing strategies. We will continue to do more in 2012. However, the most important thing we learned and what will set us apart, is working hard and working smart, while focusing on understanding and meeting the needs of our customers, to ensure they are satisfied and we work toward a lasting partnership.

JG: Distributors and OEM manufacturers are facing the same business challenges as panel manufacturers. The business is highly competitive and customers are looking for more value from their local distributor. Distributors should be asking themselves how they can bring more value to each sale, and what tools and information are valuable to a customer or end

Referrals Key to California Cabinetmaker’s Success

To service VIP clients, GNA Cabinet relies on top-quality materials from its distributor, Strata Forest Products. Most of the time that means environmentally responsible hardwood plywood manufactured by Timber Products that meets California Air Resources Board (CARB) formaldehyde standards.

If you’re building a house in Orange County, Calif., it’s likely that the plumber, electrician and cabinet installer have known each other since they were each sweeping the floors for their fathers. In this affluent community south of Los Angeles, the building trades are a mom-and-pop industry. “I’ve been working at our company since I was 14 years old. My brother and I cleaned the floors for our punishment,” said Greg Nieto Jr., general manager of GNA Cabinet. Nieto’s father, Greg Nieto Sr., started GNA Cabinet 56 years ago. Before the younger Nieto took the helm of the business, he learned the cabinet trade by helping his dad in the shop and installing cabinetry at job sites. “Starting at a young age allowed me to learn about the different hardwood materials and what works best for each project,” said Nieto. He also saw that relationships with the other tradesmen and clients were key to his business. In fact, GNA Cabinet shies away from advertising altogether and relies solely on referrals for its customers. Thanks to excellent relationships established over the years, the business is thriving.

GNA Cabinet in Orange County, Calif., is seeing more remodeling activity so far this year for its high-end custom kitchen and bathroom cabinets.

Clean and Green: Current Trends Like other parts of the country, Orange County experienced its share of economic struggles the past few years, but the tide is turning. “During the downturn we saw remodeling projects drop off, but this year we’re seeing more remodeling activity,” said Nieto. “Older houses are less expensive, so people have a bit of money left over to do a remodel.” That’s where GNA Cabinet comes in. Its custom-built cabinets are a favorite of high-end home builders, which make up 90 percent of the GNA Cabinet business. To service these VIP clients, GNA Cabinet relies on top-quality materials from its distributor, Strata Forest Products. Most of the time that means environmentally responsible hardwood plywood manufactured by Timber Products that meets California Air Resources Board (CARB) formaldehyde standards.

Design Challenges Lead to Professional Rewards Because of its affluent clientele, GNA Cabinet rarely executes the same type of job twice. The company often works with designers to create cabinetry that complements a specific house, which means custom designs. “My favorite projects are custom designs. I love the challenge of a designer coming to us with a piece of furniture and asking us to build cabinets in the same style,” said Nieto. “We never know what’s in store next.” Providing his clients with what they want is integral to the success of GNA Cabinet. As for advice to other cabinetmakers on the secret to success, Nieto keeps it simple: “Never cut corners and no matter what, always have a satisfied customer.”

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Timber Products Company Accepted into CPA’s Eco-Certified Composite Sustainability Standard Keeping with its company-wide commitment to environmental responsibility, Timber Products Company has been accepted into the Composite Panel Association’s (CPA) Eco-Certified Composite (ECC) Sustainability Standard for particleboard at its Medford, Ore., facility. One of the first companies accepted into the CPA program, Timber Products was recognized for demonstrating a strong public commitment to the sustainable use of wood fiber and to environmental stewardship in general.

Get to Know:

“From the tree to the final product, every step that we take to manufacture our particleboard panels is done with sustainability in mind,” said Timber Products Vice President Roger Rutan. “We’re excited to be recognized by the CPA for our long-standing environmental efforts and know this program will help our customers better understand that Timber Products particleboard is second to none for certifications and sustainability.”

The core requirements of ECC Certification include: • Prerequisite adherence to the stringent California Air Resources Board (CARB) regulation on formaldehyde emissions from composite wood products; • Meeting at least three of the following ECC requirements as specified in the Standard: Carbon Footprint, Local and Renewable Resource, Recycled/Recovered, Sustainability, Wood Sourcing; and • Agreeing to all terms of certification, including ongoing annual onsite audits. The CPA designation is the latest in a long line of environmental certifications achieved by Timber Products Company. Others include recognition by the Forest Stewardship Council and the Sustainable Forestry Initiative.

Spectrum Division

The Spectrum Division of Timber Products Company is an industry leader in manufacturing value-added specialty products, often customized to meet the exact needs of our customers. The Spectrum Division is located in White City, Ore., close to Timber Products Company’s forestlands and other facilities in Southern Oregon.

SpectraBoard – A hardwood-faced panel with a decorative overlay back. This panel allows cabinet manufacturers to use a single panel for both the exterior and interior of the cabinet and is available in a variety of real wood veneers, with a wide selection of stocked colors and wood grain patterns for the back.

Here are the product lines offered by Spectrum: ColorLam – Thermally fused melamine panels providing a durable and affordable alternative to high-pressure laminates in a wide range of vertical or light-duty horizontal applications, including kitchen cabinets, store displays and fixtures, drafting tables, computer work stations, furniture, shelving and closet organizers.

DecraBoard – A decorative, thermally set roll laminate that provides the high-quality appearance of melamine in a durable but less expensive panel. DecraBoard is ideal for low-wear applications such as cabinet interiors, door backs, casegood interiors, modesty panels, desk pedestals and more.

Custom Cuts – If you are in need of cut-to-size components, Spectrum is your one stop shop. Timber Products has invested in the latest technology and machine centers that provide our customers with everything from basic cutting to a finished, readyto-assemble part. Our numerous machining centers and state-of-the-art equipment provide our customers with cost-effective manufacturing solutions. Prefinishing – Enhance the beauty of your natural wood products with Timber Products Company’s RhinoCoat prefinished panels. The Spectrum Division utilizes an innovative ultraviolet curing technology to produce a beautiful finish containing no harmful volatile organic compounds. Talk to us about how Timber Products Company’s Spectrum Division can help your business be more efficient and productive. How can we help you?

Learn more about Timber Products Company: Timberline is a publication for our employees, families and customers. Requests for additional copies, or to be included on the Timberline mailing list may be sent to timberline@timberproducts.com. Editors: Roger Rutan and Leslie Hartwig

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Springfield, Oregon

Germantown, Tennessee

p: (800) 547-9520 f: (541) 744-5431 P.O. Box 269 Springfield, OR

p: (800) 477-6195 f: (901) 757-9482


Timber Products Spring Newsletter